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UrtsiJjfnt. 



GENL. ALEXANDER SEALER. 


ScattariT ani) Crcasarer. 

MARCUS WALKER. 


^oartr oi 

GENL. ALEXANDER SHALER, 
JOHN McGinnis, jr., 

WM. H. MALE, 

PHILLIP TILLINGHAST, 

CHAS. H. AMMIDOWN, 


SHERBURNE B. EATON, 
MARCUS WALKER, 
GENL. JOS. S. SMITH, 

Bangor, Me. 
COL. JOS. SELDEN, 

Norwich, Ct. 


Compana’s Cownsil. 

CHAMBERLAIN, CARTER & EATON, 

34G Broadway. 


Mining Superintendent^ .I. M. WEST. 

Engineer, .M. WILLSIE. 

Consulting Engineer, 


PALMER SMITH. 







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{For Private Distrihution.'\ 






The trustees of The Black Hills Placer Mining Com¬ 
pany submit their project to capitalists and others who 
desire to take an interest in an exceptionally safe mining 
operation, confident that it will be recognized at once, by 
those well informed, as the best that has ever been pre¬ 
sented to the public. 

Placer^ or surface mining, has advantages over quartz^ 
or rock mining, which every practical person will appre¬ 
ciate. In the first place, the extensive workings by tun¬ 
nels, deep shafts and levels, and the great outlay for 
timbering in the construction of underground mines, 
together with the costly machinery for crushing and 
milling quartz ores, are not required in placer mining. 
A good solid stream of water, judiciously applied to a 
bank of earth, conveying it into inexpensive sluices, does 
most of the work in placer mining. In the* next place, 
while the results of quartz mining are necessarily prob¬ 
lematical, owing to an inability to learn with any cer¬ 
tainty to what extent the ore deposits exist in the rock, 
until expensive shafting and tunneling has been made, 
no difficulty whatever is found in determining the actual 
extent of the deposits in earth, for these lie upon the 
surface, and may be tested in an hour with the use of a 
spade and a little water. 

The property owned by this company is located in the 
comparatively new region of the famous Black Hills, 
Dakota Territory, lying in the vicinity of Spring Creek, 




2 


a tributary of tlie Cheyenne River, in Pennington 
County. The several tracts of placer lands already 
deeded to this company, in all about 600 acres, were 
located by experienced California miners ; and many of 
them have been worked with great profit by the rude 
means of hand-washing. They have been carefully ex¬ 
amined and tested by experts and others, and their 
immense value thoroughly established. The only means 
of securing and bringing into use the vast treasures in 
these claims is by utilizing the waters of Spring Creek, 
and two of its tributaries, and that is what this company 
proposes to do. The company has secured the absolute 
and exclusive control of these waters, and will at once 
commence the construction of a flume for conveying 
them from the sources of the creek, above the hamlet of 
Sheridan, to the rich placer grounds about Rockerville, 
a distance of about eight miles, at which point the whole 
Red Earth district, covering an area of about 300 square 
miles, rich with the precious metal, and almost entirely 
unoccupied and unclaimed, is, through possession of the 
water supply, practically at this company’s disposition. 

It is estimated that the claims already deeded to this 
company, and the great area controlled by the com- 
■ pany, by the waters of Spring Creek and its tributaries 
(these waters, it should be stated, are all that can pos¬ 
sibly be made available in this section of the Black Hills), 
contain thon^ands of millions of cubic yards of auriferous 
gravel that will be worked by this company and its suc¬ 
cessors for over a hundred years at great profit. The enor¬ 
mous value of these placers may be estimated by the 
actual yield of the claims adjoining, and in the immedi¬ 
ate vicinity, which are now being worked by miners, by 
the primitive and simple means before referred to. These 
miners realize from two to five dollars, sometimes running 
as high as twelve to fifteen dollars from each cubic yard. 
The gold is found pretty evenly distributed through all 
the earth above the underlying rock (called hed Tock\ 
averaging fifteen feet in depth. 


3 


By examining the locations of onr claims, as laid down 
on the company’s map, it wdll appear that the deposits of 
gold ore are not confined to a particular section of this 
district, but that all the plateaus (technically called 
along the whole line of the creek, and extending beyond 
into the Red Earth Country, are equally favored. 

The construction of a dam and a single half mile of 
the flume will enable the company to commence mining 
operations; as the flume shall be completed from point 
to point, the water may be utilized, gnd when it has 
reached Rockerville, a head of two hundred and fifty 
feet will have been obtained, and the full capacity of the 
water supply be made available for operating on the large 
deposits in that vicinity. 

The amount of money required to develop this enter¬ 
prise is very inconsiderable compared with its magnitude. 
For this purpose it is proposed to offer for sale one 
quarter only, of the full paid stock of the company, at 
ten per cent, of its par value. A large portion of this 
has already been taken, at that rate, by the original pro¬ 
moters and trustees. 

Attention is called to the report herewith of Marcus 
Walker, Esq., who recently made an examination of 
the property in the interests of New York parties, and 
to the estimate for cost of works contained in the letter 
of M. Willsie, M. E., addressed to Mr. Walker. 

Also to the letters following that report, written before 
Mr. Walker’s visit to the property, by Mr. F. A. Babcock, 
manager of the Sir Rhoderick Dhu Mines at Central City, 
D. T., and by Mr. John Rigby and Mr. Wm. H. Hen¬ 
drickson, mining engineers. 

Maps, drawings, &c., of the Black Hills country and of 
the company’s property, with full details, will be furnished 
upon application to the company’s offices. Nos. 37 and 
39 Wall St., Queen Building, room 13, where the sub¬ 
scription book is now open. 


4 


The Black Hills Placee Mining Co., 

organized under tlie laws of the State of New York, and 
in compliance with the laws of Dakota. 

Capital.$10,000,000. 

Divided into 200,000 shares of $50 each. 

Subscriptions limited to 50,000 shares. 

These shares to issue full paid and nnassessable, are 
now offered at $5 per share,' or at 10 per cent, of par 
value—the entire proceeds to be paid into the company’s 
treasury. 

Five per cent, required on the day of subscription. 

20 per cent, on the 2d of January next. 

25 per cent, on the 2d of February. 

25 per cent, on the 2d of March, and 

25 per cent, on the 2d of April. 

All the proceeds to be used in developing the enter¬ 
prise, under the personal supervision of the officers of 
the company and experienced mining engineers. 

No bonusses paid to original owners, or to any persons 
whomsoever. 

ALEXANDER SHALER, President. 



5 


New Yoek, Nov. 29th, 1879. 
To Maj. Genl. Alexandee Shalee, 

President of the Black Hills Placer Mining 
Company^ New York. 

Bear Sir .—On October 16th, last, on the request of 
friends in New York, I left this city to examine the 
property of the Black Hills Placer Mining Company, 
situated in Pennington County, Territory of Dakota, and 
now, on their advice, present for your consideration the 
following 


REPORT. . 

I arrived at Deadwood, the principal city of the mining 
region in the Black Hills of Dakota, on the morning of 
the 23rd of October. The following day, accompanied 
by Capt. I. M. West, one of the owners of the mentioned 
property, Mr. F. A. Babcock, Manager of the Sir Bhoder- 
ick Dhu Mining Company, and Mr. M. Willsie, a Civil 
and Mining Engineer, drove to Sheridan, about 50 miles 
south from Deadwood. 

The next five days were, spent in making careful in¬ 
vestigation at Sheridan, and at the Bockerville Mining 
District below Sheridan, of the locations made by the 
said company, examining the water supply and the prac¬ 
ticability of appropriating and applying, this supply for 
hydraulic mining, testing the value of the placer deposits 
and noting the general formation of that section of 
country controlled by this company’s water-supply. 

The waters of Spring Creek flow from a water-shed 30 
miles long by 30 miles wide, westerly, and enter the 
Jenney Mining District about 2^ miles above the town of 


6 


Slieridan, througli a “draw” about 300 feet wide. Three 
Gulches—Ruby Gulch inclining from the south-west, 
Palmer Gulch from the west, and Keokuk Gulch from 
the north-west—form a junction at this “draw while, 
below. Spring Creek Gulch opens out in the valley. At 
this point the company has acquired the right to the 
waters of the creek for the purpose of mining, milling 
and other uses, and here they have erected a temporary 
surface-dam. From this position the company has had 
the line of its proposed ditch and flumes surveyed, staked 
and mapped to the head of Rockerville Bar. A ditch of 
about half a mile in length from the present dam, on the 
said surveyed line, has been built, into which the surface 
water of Spring Creek is turned and appropriated. 

Measurement was made on the first day of my visit, of 
the water running in the ditch just below the dam, and it 
was found to be 964 miner’s inches in volume. This was 
the surface water from the creek. By observation here 
and at places both above and below on the creek, where bed 
rock drifting had been attempted, and from the statements 
made to me by miners living in that vicinity, I am con¬ 
vinced that there was as much more water running 
below surface above bed-rock, the distance from surface to 
bed-rock being about 20 feet of a gravel deposit. I con¬ 
sider it therefore safe to estimate the volume, when a 
permanent bed-rock dam shall be put iu, at 1500 miner’s 
inches. There had been a very dry season previous to 
my visit; no rain had fallen in that locality for over 
three months. That estimate on the water, it will be 
noticed, is made at its low stage, but it should be stated 
that I was assured by miners and others who had lived 
in that section for three years past, that during more 
than six months in the year, or from March to September, 
there will be twice that volume of water in the creek at 
this place, or say 3000 miner’s inches. 

In addition to the above, and below that location, the 
company possesses two other water-rights in a position 
to^serve as feeders, if needed, to the proposed ditch and 


7 


flumes. Each of these additional water-rights is for 300 
miner’s inches in quantity, one located on Mallory 
Gfulch and one on Baker’s Park Gulch. 

At and about Sheridan, in the Jenney Mining District, 
the company owns the following mining ground, viz: 

Opposite Iowa Bar, a hill claim of 20 acres, one-half 
mile from the dam or point of commencement of 
flume. 

On Sheridan Bar, 60 acres, two and one-quarter miles 
from the dam. 

On Half Moon Bar, 60 acres, six and one-half miles 
from dam. 

In Sheridan Gulch, lying between Sheridan Bar and 
Mallory Gulch, 9 claims, each 300 feet in length by 
width of gulch, average width 700 feet. 

In Buckeye Gulch, at the lower end of Sheridan Bar, 
3 claims of 300 feet in length each, by width of gulch. 

In Democrat Gulch, one and one-half miles from the 
above, 2 claims of 300 feet each in length, by width 
of gulch; and 

In Spring Creek Gulch, 16 claims of 300 feet each, 
averaging about 900 feet in width. At different loca¬ 
tions, two of the claims at the site of the dam, the 
others between the claims at the dam and the town 
of Sheridan. 

Over an area 6 or 7 miles in length down the Spring 
Creek Valley, within the Jenney Mining District, are 
many bars and short gulches covered with auriferous 
gravel. 

Along the Spring Creek Valley, on the southerly side, 
runs the line of the company’s proposed ditch and 
flumes, diverging in and out around the hills, a distance 
of 17f miles to a point over Bockerville Bar, in the Rock- 
erville Placer Mining District. 

The Rockerville Placer Mining District is distant but 
about eleven miles in a direct line from the company’s 
dam. In that district the company owns the following- 
mining grounds, viz: 


8 


On the upper end of Rockerville Bar, 18 claims of 300 
feet square, known as the Black Hawk location. 

On Pheasant Gulch, 26 claims of 300 feet square each, 
adjoining the above Black Hawk location. 

On Ohio Gulch, 8 claims, 300 feet square each. 

On Keelor Gulch, 10 ‘‘ 300 

The Hale location, 6 300 “ 

The Sample location. 8 ‘ ‘ 300 “ ‘‘ 

The He Witt location, 6 ‘‘ 300 ‘‘ ‘‘ 

On Henderson Gulch, 4300 

Red Earth location, 15 300 

After passing Rockerville Gulch, the area of placer 
ground below and within the Rockerville Mining Dis¬ 
trict, completely controlled by the company through its 
water rights, is about 12 miles wide by 25 miles long ; 
all one immense gold-bearing drift from 12 to 20 feet 
deep. Most of this ground lies very advantageously for 
hydraulic washing. 

Situated in this tract is Mammoth Bar, of about 5,000 
acres, and Red Earth Bar, 12 miles long by one-half mile 
wide, both bars seamed with numerous ravines where 
good dumps” can be had, these ravines never being 
over 500 feet apart. 

This strip of country plainly shows that the alluvia 
came from an ancient wash. The hills all show the 
action of the waters ; the gulches and bars are covered 
with a detritus of a reddish hue, composed of quartz, 
iron, slate, sandstone, &c. A black sand, composed main¬ 
ly of magnetic iron, accompanies the gold. 

I had very many ‘‘pannings” made of the earth taken 
at dilferent locations at Sheridan, and in the gulches and 
liills about' Rockerville and the Red Earth country. 
Every panning showed gold from IJc. to 5c. to the pan. 
As 140 miner’s pans of earth are calculated for a cubic 
yard, those results showed a value of $2.10 to $7 per 
cubic yard of earth. 

The “color” of these pannings I have kept, with 
memoranda of places where each was made. 


9 


I had several wagon-loads of earth dug from different 
holes in the hills about Rockerville, had these carried to 
water in the gulch, and there the earth was washed for 
me. Two of these wagon-loads of dirt were taken from 
a hole on the company’s ground, at the Black Hawk 
location, each load containing one cubic yard of earth ; a 
miner, named John Jewett, washed both loads of earth 
through a rude appliance. He shoveled the dirt into a 
puddling box, 3 feet by 6 feet, gradually allowing -it to 
wash out through a sluice-box 10 feet long; he cleaned 
up in the riffles $1.65 in gold from both wagon-loads. I 
was convinced that he had lost in the tailings as much as 
one-half of the gold in* the dirt; we panned some of the 
tailings and found ‘‘color.” The next morning washed 
two bushels of those tailings, and got about 30 cents in 
gold. 

Another wagon-load, or 1 cubic yard of dirt, was 
taken from a claim on Henderson Gulch, and washed 
for me by a miner named Jones ; the result was 2 dwts. 
and 7 grs. in gold, value $2.06. 

I had the same miner wash another wagon-load (one 
cubic yard) of dirt that I caused to be dug from Keelor 
Gulch ; out of this we got a clean-up of $3.37 in gold. 

In the Red Earth belt below the town of Rockerville, 
took from each of two openings, where the company has 
claims, about half a bushel of gravel. From three dif¬ 
ferent openings on the Mammoth Bar, took some of the 
gravel, about a bushel from each opening. These samples 
were put in sacks and carried to Rockerville Gulch ; 
there I had the contents mixed, and made three separate 
pannings of the earth, and got 5 cents in gold from the 
three pans, or If cents to the pan, equal to $2.33 per 
cubic yard. 

The only mode of working small claims by the miners 
at Rockerville and at Sheridan has been to dig the earth, 
cart it to the gulch stream, and there wash it. These 
miners say that it costs $1 per load or cubic yard to dig¬ 
it, $1 to haul it, and $1 to wash the dirt. They say they 


10 


must find diggings to pay over $3 per wagon-load, that 
they only look for the richest paying streaks, and if the 
dirt does not pay $5 or over per cubic yard, they seek 
other diggings. 

Many diggings of but few feet square surface were 

shown to me on the hills where miners had taken out 

different amounts, from $500 up to $3,000. 

/ 

I saw the miners at work as I have described ; I talked 
with many of them. The statements they made were 
interesting, and remarkably in accord, and were as fol¬ 
lows : 

At Sheridan, about 600 feet above the dam location on 
Palmer Gulch, a claim was being worked by a miner 
named Williams. He told me that he and a partner had 
worked on that claim since last May, and had realized 
$1,500 in gold, mostly in coarse nuggets. The space 
worked out in his claim was only 50 feet by 20 feet, and 
about 12 feet deep. 

Below the dam location in Spring Creek Gulch, a miner 
named 'E. Barthold, showed me where he had' been at 
work and had been forced to leave the location, as he 
could not drain the bed-rock water. He said that he had 
seen 65 dwts. in gold taken from two wagon-loads of 
gravel dug from a claim below his. There will be places 
in the gulch, he said, where the coarse gold will accumu¬ 
late and pay very rich, and the whole of Spring Creek 
bottom through Sheridan will, after a bed-rock dam 
turils the water, be worked very profitably. 

Barthold had been and was then working a hill claim 
by the side of Sheridan Bar. He got from $1 to $5 per 
wagon-load from that claim; he had obtained $25 from one 
wagon-load. He said he had prospected all the hills and 
bars about Sheridan and Spring Creek Gulch, and found 
no place where the dirt, even at surface, would not pay 
$1'per cubic yard. He thought the ground would aver¬ 
age in value $3 per cubic yard. 


11 


At Rockerville, my interviews were with the following 
miners : 

H. M. Halloway has a claim on the hill by side of 
Rockerville Gnlcli; he had sunk a hole 18 feet deep from 
which he had taken out 20 wagon-loads of dirt that 
yielded him $45. He was 6 to 8 feet above bed-rock from 
the bottom of that hole. 

He also has a claim in the gulch where he has two men 
at work, and although he can only get a little water in the 
gulch for about 5 hours per day, he has taken out an 
average of $30 per day from that claim. 

Mr. Beadle, an- experienced miner, has a claim in 
Rockerville Gulch on which he has put a steam pump to 
raise bed-rock water. He has three men at work on his 
claim ; he told me that his “clean-up” for the past two 
days was 3 ozs. 3 dwts. and 17 grs. in gold, equal to $58.95. 
He said he had taken out over $50 per day, with two 
men, from his claim. The volume of water that he raises 
with his pump is about 10 miner’s inches. After using 
this water he passes it to miners on claims below him, 
who pay him $45 per week for the supply. 

Mr. Beadle said that the dirt which the miners about 
Rockerville would cart to water, paid on an average $5 per 
wagon-load. 

Ryerson and a partner, two miners, were washing in 
the gulch three cart-loads of gravel from a rich streak on 
Mineral Hill, of Rockerville. Saw them clean up from 
this $35 in gold. 

Han’l Sibley, a miner, was washing one-half a wagon- 
load of tailings, from which he cleaned up 2 dwts. in 
gold—value $1.85. 

Pat Dillon, a miner in the gulch, said he had been 
working his claim the past Summer with seven men, and 
although he had very little water at his claim, and was 
frequently delayed for want of water, his daily product 
would average over $50. Dillon has a claim on the hill 
opposite his gulch claim, out of which he had taken dirt 
that paid from $8 to $10 per cubic yard. 


12 


D. D. Sweet, a miner on Rocky Gulch, said he had 
just washed three wagon-loads of dirt from his claim 
that yielded 18 dwts. and 5 grs. in gold—equal to $5.60 
per cubic yard. He had with him the gold that he had 
taken from ten other wagon-loads—it was weighed and 
found to be 2 oz. 2 dwts. and 21 grs., worth $39.63, show¬ 
ing a yield of about $4 per cubic yard of dirt, 

Francis, a miner at the head of Henderson Gulch, said 
he took out from $4 to $5 from each wagon load of his 
gravel. 

Richard E. Erb, a very intelligent miner, was washing 
in the gulch two wagon loads of picked gravel, quite 
rich, from his claim on Colson Gulch. I waited for the 
clean-up and bought it of Erb. It was 38^ dwts., worth 
$35.61. 

Erb said he had prospected over the Red Earth ground 
and on Mammoth Bar, below Rockerville, that he had 
always got from Ic. to 5c. per pan from the dirt. He 
could not locate there, he said, for want of water. 

Mr. Sands, a miner at Rockerville, told me that he had 
prospected over Mammoth Bar, and had got from a 
‘‘color” up to 25c. per pan. Said that he had packed 
bags of the dirt from Mammoth Bar, on his back, two 
miles to water, and made “ grub.” 

Mr. Jones, a miner on Henderson Gulch, told me that 
he got about $5 to the wagon load from his claim. That 
with two men he had taken out about $2,000 the past 
Summer. 

I talked with other miners, who made corroborative 
statements of the yield of the diggings at Rockerville, 
and of the prospects in the section below the town of 
Rockerville. 

The source of the company’s supply of water has been 
found to, be of sufficient elevation to cover the extent of 
mining ground before mentioned. I refer to the reports 
herewith of the engineers on the construction of the 
flume, and to the estimates for cost of the work made by 
the engineers and by Capt. West. 


13 


The flume will be carried to a j)oint on the ridge at the 
head of Rockerville District, where there is a fall of 250 
feet to the placer grounds below. This flume will carry 
a volume of 1500 miner’s inches at all times. 

Each inch of water under 250 feet head, will move 4 
cubic yards of gravel, such as is deposited at Rocker- 
ville District, every 10 hours—or 9 yV yards every 24 
hours. One 3^ in. hydraulic nozzle, under 250 feet head, 
requires 194 inches of water. Allow that 1500 inches of 
water supplies but six 3^ in. nozzles, or 250 feet water to 
each nozzle. 

Each nozzle will move 2400 yards of earth every 24 
hours. 

Six nozzles will move 14,400 cubic yards in 24 hours. 

From all the evidences it may be claimed that these 
entire placer grounds described will yield on an average 
$1 per cubic yard. It has been shown that much of it 
pays from $2 to $5, and over, to the cubic yard. 

Estimate the yield at but 25c. per cubic yard, and the 
result of washing 14,400 cubic yards of the ground 

will be.$3,600.00 

The daily expenses attending this work, for all items, 
cannot be stated over $200, including salaries of 
superintendent and engineer (see items of this 
expense in the report of Mr. Willsie herewith). 


but to cover all contingencies—say, per day. 250.00 

Net result each day.$3,350!00 


Or $100,000 net result per month. 

In the immediate vicinity of the town of Rockerville 
locations are made on the gulches by miners. In Colson 
Gulch there are about 30 different claims taken. On 
Henderson Gulch about 40 claims are located ; on Wy¬ 
man Gulch as many ; on Capt. Jack Gulch 20 locations ; 
on Jack Ass Gulch 20 more. I am prepared to show that 
the company can derive quite as handsome a revenue if 
some portion of its water shall be sold to the miners who 
have locations on those gulches 






14 


From the company’s discharge, a ‘^sluice-head,” or 50 
inches of water, can be carried in a small Hume—a Hume 
that may be moved from place to place—to the head of 
any of these gulches. In other mining districts the price 
paid for water for sluicing purposes (50 inches in volume 
is the required amount) is not less than 50 cents per inch 
per day by each user. As high as $1 per inch per day is 
paid. 

If this company will conclude to sell any of its water, 
it can fix a price that will be comparatively very cheap, 
and will be most readily paid by the miners at 25c. per 
inch per day to the first users, grading the price down to 
15c. per inch to the last users, an average of 20c. per 
inch per day to each user. One sluice-head of water 
thus sold on one of those gulches, where there are 25 
locations, will realize $250 per day to the company. The 
company may, or may not, after it shall be in operation, 
sell any of its water, but it can furnish and sell 250 
inches, sufficient for 5 sluice-heads, by taking ofi the 
supply to one hydraulic nozzle, and for the period re¬ 
quired work 5 nozzles in place of 6 on its placer ground. 
Five sluice-heads, of 250 inches of water in all, divided 
to 5 different gulches, will yield $1,250 per day to the 
company. 

Before the water can be brought to Rockerville opera¬ 
tions can commence at and about Sheridan. Here the 
cl^ms of the company must be worked by “ground- 
sluicing.” The volume of water that the flume carries 
will ground-sluice 1,500 cubic yards of earth per day. 

After the flume is built to Rockerville 1,500 inches of 
water should constantly be carried to that point for 
effective work under heavy pressure through hydraulic 
appliances. Whenever, particularly in the spring and 
summer months, there will be more than 1,500 inches 
at the dam, the extra amount will be used to ground- 
sluice the bars about Sheridan. 

Another source of profit will come from Spring Creek, 
below the point where the company will turn the water. 



15 


Here, in the bottom of the creek, will be deposits that 
will pay well in coarse gold and nnggets. This part of 
the ground must be worked by bed-rock drifting as soon 
as the company has erected its bed-rock dam. 

When the company shall have its llnme constructed, 
the water brought to the bulkhead or pressure-box, then 
to the feed-pipes, and thence to the discharge-pipes or 
hydraulic nozzles, it has before it an operation of magni¬ 
tude and financial importance. 

The gold will be obtained by simple washing, with the 
aid of well-known appliances, readily and abundantly, 
without the necessity of mining for it in the solid rock. 
Large, continuous, and profitable results will come at a 
trivial cost. 

The Black Hills Placer Mining Company owns the 
right for all the water available for the described mining- 
ground. Other water from remote streams cannot be 
brought to this section, owing to the physical formation 
of the country. 

The company controls a gold-bearing area that may be 
worked continuously for over a hundred years to come, 
at a profit that may reasonably be expected of at least a 
million dollars per year. 

The titles to the property of the company were care¬ 
fully examined by B. G. Caulfield, Esq., of Deadwood, a 
lawyer of experience and high character, and thoroughly 
reliable. His written opinion is made, in which he states, 
in conclusion, that the titles are now good in the parties 
who hold for the company. 

At a meeting of those -who shall be interested in this 
company I shall be prepared to state more particularly 
certain views about the management of the property. 

It is especially requisite to be expeditious in this en¬ 
terprise now, that the company may be ready to turn the 
water to eftective work by next May. 

Respectfully, &c., 

MARCUS WALKER. 


16 


Me. Marcus Walker, 

Dear Sir .—In compliance witli your request, I hand 
yon a detailed statement of the cost of constructing a 
flnme from a certain point on Spring Creek, below the 
month of Palmer Gulch, to Pockerville, a distance of 
eighteen miles, capable of carrying 2000 inches of water. 

Size.— Size of flume, 42 X 48 inches, constructed of 1 ^ in. plank, 
tied together with timbers every 4 feet, placed on cords of 
siwed timber 6x6. 

in. plank for 1 mile flume, 12 inches in width, amounts 

to— 

Plank.— 3,360 pieces 16 ft. in length, each contain¬ 


ing 32 ft. of lumber..... 116,160 ft. 

Bottom Ties. —Bottom Ties 3x6 in., 7 ft long, 1,320 

pcs., each lOJ ft. of lumber. 13,860 “ 

Side Braces. —Side Braces 2x4 in., 4 ft. long, 2,640 

pcs., each containing 2| ft. of lumber. 7,040 “ 

Caps. —Cap 2x6 in., 6 ft long, 1320 pcs., each con¬ 
taining 6 ft. of lumber. 7,920 “ 

Sills. —Sills or lower cord, 6x6 in., 16 ft. long, 660 

pcs., each containing 48 ft. of lumber. 31,680 “ 

Foot Plank. —Foot Plank 2x12 in., 16 ft. long, 

330 pcs., each containing 32 ft. of lumber. 10,560 “ 

Batting. —Battings ^ by 3 in., 16 ft. long, 2,970 pcs., 

each containing 4 ft. of lumber. 11,880 “ 

Lumber. —Add for waste and breakage. 900 “ 


Per Mile.— Total per mile of flume. 200,000 ft. 


Total for Flume.— Total 18 miles. 3,600,000 ft. 


Feet of Trestle.— There appears from the profile 
to be 8,105 ft. of trestle work, averaging 10^ ft. 
in height. This calls for the following amount 
of lumber, estimating the trestles to be placed 
16 ft. apart: 


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17 


Sills.— Sills or Posts, 8x8 in., 12 ft. long, 1,521 

pcs., each containing 64 feet of lumber. 07,344 ft. 

Caps.—C aps 8x8 in., 6 ft. long, 507 pcs., each 

containing 32 ft. of lumber. 11,224 

Braces.— Short Braces 4x6 in., 6 ft. long, 2,028 

pcs., each containing 12 ft. of lumber. 24,336 “ 

Braces.— Long Braces 2 X10 in., 16 ft. long, 1,014 

pcs., each containing 27 feet of lumber. 27,378 “ 


Total Trestle.— Total lumber for Trestle Work... 160,282 ft. 


Tunnel and Kock.— I also find there will be 930 
lineal feet of tunnel and rock work, the cost of 

which will be about $15 per lineal foot. $13,950.00 

Earth-work.— There will also be 640 lineal feet of 

earth-work, which will cost $5 per lineal foot.. 8,200.00 

Grading.— The Grading for entire length of flume— 

18 miles, less trestle- work, tunnels, rock, earth¬ 
work, &c., above mentioned—say 16 miles, will 
cost about $5 per lineal rod, or $1,600 per mile. 

16 miles. 25,600.00 


Dam.— To construct the dam will not cost less than $20,000. 
This will be 300 ft. in length. 

Depth of Gravel.— While the bed rock has not been reached at 
this particular point, I am quite safe in estimating the de 23 th 
at 25 ft. from what is known of the depth of the wash at 
other jioints above and below the point where your dam will 
be located. 

It is absolutely necessary to start this dam from bed rock 
with water lime. From what is known at 23oints where bed 
rock has been reached, there is not less than 1,000 inches of 
w'ater below the surface to contend with, while the excavation 
is being made. It may also be necessary to sink coffers, to 
guard against the water—hence my estimated cost of $20,000, 
without entering into a detailed statement. 

Bulk Head.— I also estimate the cost (without detail) of con¬ 
structing the bulk-head at the mouth of the flume, $2,000. 



















18 


Recapitulation. 

Lumber to construct flume.*. 3,600,000 ft. 

“ “ “ trestle. 160,282 “ 


3,760,282 ft. 

Add to cover all contingencies. 239,718 “ 


Total.'._ 4,000,000 ft. 


Cost of lumber ($15 per M.). $60,000.00 

“ “ labor to construct ($11 per M.). 44,000.00 


Total cost of lumber in flume, &c. $104,000.00 

Cost of tunnels and rock work. 13,950.00 

“ “ earth excavations. 3,200.00 

“ “ grading. 25,600.00 

“ “ dam. 20,000.00 

“ “ bulkhead . 2,000.00 

1,500 lbs. nails per mile, at 10c.—18 miles. 2,700.00 

Iron Pipe. —100 ft. of No. 12 iron pipe, 60 inches in 
diameter, reduced to 45 inches—9,064 lbs., at a 

cost of 15c. per lb. 1,359.60 

Cost of 1,500 ft. No. 10 iron pipe, 45 inches re¬ 
duced to 30 inches—6,048 lbs. at 15c. per lb.. 13,608.00 

2,000 ft. 8-in. flexible hose, six 3J-in. nozzles—the 
cost of which is to be added—say $300 for each 

nozzle and $6,000 for hose. 7,800.00 

Sluice boxes. 1,000.00 

Cutting timber along line. 2,500.00 


Total Cost. $197,717.60 


The estimate for lumber to construct the flume is correct, while, 
of course, the estimate to construct the trestle work is approxi¬ 
mated, but will fall below rather than above. 

The tunneling and rock work, while the profile shows 930 ft., 
which I estimate at costing $15 per foot, is in the main correct, 
as well as the cost for 640 feet of earth-work, while the estimate 
for grading is entirely approximate, and, without a doubt, is 
largely in excess of what the work will cost, as much of the dis¬ 
tance is a light loam or gravelly soil. 




























19 


In fact, in my entire estimate, I have aimed to give you figures 
which will prove to be above rather than below the actual cost of 
construction. A minute and absolute estimate ■ cannot be made, 
until a survey is made with that view directly. The profile and 
notes handed me by Mr. Hendrickson, showing the level line only, 
proves that the water can be taken from Spring Creek to Rocker- 
ville, and from which an approximate cost only can be made for 
construction of the fiume. 

After the flume is constructed there will be 1,500 inches of 
water at all seasons of the year for use; and from the first of 
April until the first of August more than the flume will carry. 

Miners’ Estimate of Water.— Laborers in placer mines of Cali 
fornia estimate the value of 250 inches of water in placer mining, 
to be worth 200 men shoveling. For instance, if one man can 
shovel ten yards of gravel in one day of 10 hours, the same man 
can, with the aid of 250 inches of water running over an embank¬ 
ment, dig out ten times as much gravel or dirt. 

The same amount of water under 250 ft. pressure, will do the 
work of ten men ground sluicing^ or will move 2,000 yards of dirt 
every 24 hours. 

Calculation of the Value of Water. —By scientific calcula¬ 
tion we find that 250 inches of water under 250 ft. pressure, used 
to its utmost capacity, will move 7.7 yards of heavy wash gravel to 
each miner’s inch of water every 24 hours, or 9.6 yards of earth 
and light gravel—the latter predominating at Bockerville, the for¬ 
mer on Sheridan Bar and along Spring Creek. 

Result. —This result moves 2,400 yards of dirt every twenty- 
four hours; the work of each nozzle, allowing 6 nozzles for 1,500 
inches of water, gives a capacity for moving 14,400 yards of earth 
every 24 hours. 

Very truly yours, 

M. WiLLSIE, 

Engineer. 


✓ 


20 


Marcus Walker, Esq., 

Dear Sir :—Below I hand you statement or estimated 
cost of the running expenses, ■ after the construction of 
the proposed flume. 

Starting with 6 nozzles or streams of water, kept con¬ 
stantly at work. 

Allowing eight hours to be a day’s work for each 
laborer. 

3 Men for each nozzle, 8 hours each—18 men at $3 per 


day... $54,00 

5 Men in pit and sluices, $3 per day. 15.00 

5 Watchmen on flume, $3 per day. 15.00 

1 Foreman of work. 5.00 

Superintendent. 12.50 

Engineer. 6.66 

Bookkeeper. 5.00 

2 Horses, expense of. 2.50 

Repairs, say. 10.00 

Mill for lumber, block, riffles, &c. 25.00 

Add to cover all contingencies. 99.34 


Total.. $250.00 


I cannot find items to cover the $250.00, and have added 
to make the amount, admitting that to be the cost for 
each 24 hours. 

• These works, when completed, have a capacity for 
moving 14,400 yards of earth in 24 hours time. 

Allowing the earth to be worth but 25c. per cubic yard, 
will yield, daily, $3,600, or $108,000 per month—at an 
expense of $7,500. 

With an area of 240 square miles, (12x20 miles which 
is known to exist) with an average depth of 12 feet, gives 















21 


you 2,973,696,000 cubic yards, to say nothing of Spring 
Creek Gulch, Sheridan Gulcfi and Bar, and much other 
ground along the line of the flume. 

Very truly yours, 

M. WILLSIE, 

Engineer. 


% 


( 


^2 


Central City, D. T., 

July 1st, 1879. 

Jno. McGinnis, Jr., Esq., 

30 Broad St., New York. 

This will probably be the most extraordinary letter 
that you have ever read on the subject of gold. 

I went with Capt. West to Spring Valley, 45 miles 
from here, to a place called Sheridan, just above which 
he intends to put in a bed-rock dam from 15 to 20 feet 
high. The stream running through this valley he owns. 
As r saw it, I estimated it to carry 2,880 inches of water. 
It of course varies in volume, but I am informed that it 
never runs less than 1,200. This volume will be increased 
one-third by taking up the water on the bed-rock. For 
seven miles below the dam there are bars varying in size 
from 1,500 feet wide, and from one-eighth to one mile in 
extent. From this valley there are many side gulches. 
Passing over the divide we fell into Rockerville Valley. 
Here the bars are from one mile in extent to fifteen miles. 
Passing over these hills we fell into Battle Creek Valley. 

These gulches, bars and valleys are all rich in gold-bear¬ 
ing gravels, but are comparatively unworked, as the only 
water available is that which flows in the small streams 
in the bottom of the gulches. The only mode employed 
is to cart the dirt from i mile to 2| miles, and then 
sluice it. If the dirt falls below $4 per cart load, or one 
cubic yard, the whole is abandoned, and richer diggings 
sought. Many have yielded as high as $50. Now, when 
I tell you that there are miles of this gravel, more than 
could be washed out in a hundred years, with a steady 
flow of 3,000 inches of water, it certainly goes ahead of 
any of the great placers either in California, Central or 




23 


South America. The like in extent or richness has never 
been discovered. 

We made many pannings, and, with only two excep¬ 
tions, always obtained gold, and never less than two 
cents to the pan of dirt, and from this to II. I saw eight 
team loads washed, the product was $40. Another man 
came into the bank and obtained for his gold $106. He 
stated it was from nine loads. I saw 2i pounds of gold—a 
clean-up of 3^^ days, from a hydraulic nozzle on 
Battle Creek, and this was from dirt that had been pre¬ 
viously worked. The gold is very fine grade, bringing 
$19.40 in New York against about $18 for Dead wood. 

As I have stated, Capt. West owns Spring Valley 
water. It can be carried over any of the Hockerville bars, 
and is the only water that can be carried into the district. 
His preliminary surveys are now being made, and the 
estimate is $3,500 per mile, or for 20 miles $70,000. Add 
to this the sluices and hydraulic nozzles, 6 of them, 
$2,000 each, makes $82,000. As soon as the first half 
mile is built a large income begins at once. 

I estimate that with six hydraulics at work, an income 
of $3,000 a day will inure, and this is below, not above. 
In California, it is estimated that gravel that will pay 6 
cents per cubic yard is rich ; here at the lowest pannings 
of 2 cents, 140 pans to the yard, you have $2.80 cents to 
the yard. I have seen holes out of which from $2,000 to 
$6,000 have been taken. 

The subject is as inexhaustible as the gold and the 
extent of the country. 

Here, then, I place in your hands the largest mining 
project that has ever been laid before New York, and 
out of which you can gather an immense fortune. It 
is of more intrinsic value than many quartz mining 
properties. It eats no wood ; it takes no costly mill. 

Personal inspection alone can bring to the mind even an 
approximate idea of this gold mine. It will easily bear 
a capital of $10,000,000. 

In Capt. AVest you have a man experienced in the 



24 


California. Colorado and Australian gold fields. He lias 
been here three years, searching these hills. This is the 
first and only mine that he deemed worth embarking in. 
He has built nearly all the gold mills in this district, 
and bears universally the character of a conscientiously 
honest man, a thorough engineer and mechanic. 

I have induced him to go to New York and put the 
property in your hands, and I trust you will not let this 
opportunity pass of making a large, a very large fortune. 
It is a daily income, and one that will last your life time, 
and for two or three generations to come. If you take it 
up I hope you will remember me in it. 

Truly yours, 

F. A. BABCOCK, 

Manager of the Sir Rhoderick Dim Mines. 


25 


F. A. Babcock, Esq., 

Dear Sir :—Below you will find some facts and figures 
concerning the enterprise laid before yon by Capt. I. M. 
AYest and others, including the cost of the flume from 
the dam to its termination at Bockerville, a distance of 
seventeen miles. The estimate is made for one mile of 
flume. It is advisable to make a large allowance in the 
working capital for contingencies, which may arise in any 
well-conducted business. 

The size of the proposed flume, and the size upon which 
the estimate is made, is three and one-half feet in height 
by four feet in breadth, capable of carrying at least two 
thousand inches of water, which will be all the water the 
company could spare to send to Bockerville, until the 
Sheridan ground would be washed out, which you can 
determine to be at a very distant day. 

The planks forming the sides and bottom of the flume 
will be one and one-half inches in thickness. The seams 
will be battened with one-half by three battens. The 
flume will ,set on sills of three by six; the box will be 
enclosed in brackets or straps of two by four, with the 
toj) cross piece of two by six. The sills will rest on 
stringers of four by six, except upon the trestles, which 
will be of six by six. All short trestles will be con¬ 
structed of sawed, six by six. Large trestles will be 
constructed of hewed timber. The survey riot being 
flnished on close detail, the trestle timber is merely a 
rough estimate, but not in my opinion any too large. 

Plank used in one mile of box, in. in thickness, of 
such width as may be obtained, not less than 12 

in. wide, amounts to. 59,400 ft, 

3x6 sills, six feet long, placed every four feet. 11,880 “ 




26 


2x6 cross pieces, on top of flume, 6 feet long. 7,920 ft. 

2x4 side brackets, 4 feet long, and mortised into sills 

and top pieces. 7,040 

4x6 stringers. 10,560 

6x6 “ 15,840 “ 

Battens to cover seams. 3,960 “ 

Trestles of sawed timber. 43,400 


Total sawed timber. 160,000 ft. 

Amt. hewed timber. .... 45,000 “ 

Total timber used. 205,000- ft. 

By calculation we find that there will be fifteen kegs of nails 
used in the construction of one mile. Labor of putting the flume 
in place, etc., amounting to two thousand five hundred dollars per 
mile. There will be two tunnels to run, aggregating three hun¬ 
dred feet. From above I form the following estimate: 


160,000 feet sawed timber @ $15. $2,400.00 

45,000 “ hewed “ “ 8. 360.00 

15 kegs nails “ 8. 120.00 

320 rods grading “ 2. 640.00 

Labor of construction, etc. 2,500.00 


Cost for one mile. $6,020.00 

“ “ seventeen miles. 102,340.00 

300 feet tunnel ($15). 4,500.00 

Construction of dam. 10,000.00 

One-half mile of pipe, with distributors and neces¬ 
sary conncetions. 25,000.000 

$141,840.00 

It is said by some that it always pays to ditch when 
possible ; but when water is the object, as in the present 
instance, it will not prove the cheapest. The loss by 
seepage would amount to at least fifty inches. This loss 
will more than compensate for the extra expense in one 
year, when saved by fluming. In a table compiled by 
myself, you will find the estimated power of the water 
under different heads, also showing the gross returns 
obtainable, which table is substantiated by experience in 
California. 

























27 


I will now close by showing yon a few figures regard¬ 
ing the amount of gravel in the country which this fiume 
will cover, as approximately estimated by myself, subject 
to your approval. , 

The area of this Placer country may be safely set down 
as 12x25 miles, or 300 square miles, all of which is gold- 
bearing gravel, as has been determined by actual pros¬ 
pecting. Let us suppose that only half, or one hundred 
and fifty square miles, is available to our fiume, we 
have then, by supposing the gravel to be only fifteen 
feet in depth, two billion, three hundred and twenty- 
three million, two hundred thousand cubic yards. Re¬ 
garding its richness, it is an^ exceedingly low estimate 
to put it at one dollar per cubic yard. 'Now the best 
results obtainable, with 300 feet pressure and one thou- 
^sand inches of water, would be seven, thousand yards 
per day after the fiume is put in operation. Two hun¬ 
dred and fifty dollars a day is a large estimate for 
running expenses. 

In a year’s time this property may be made to pay a 
monthly dividend on one hundred thousand shares of 
one dollar per share. And this may be kept up for the 
next one hundred years without abatement. Let those 
who doubt come and see. 

Y ours truly, 

(signed.) JOHN RIGBY, M. E. 


28 




Deadwood, J). T., 

July 6tli, 1879. 

Mr. F. a. Babcock, 

Central City. 

Dear Sir :—Yours of tlie 1st inst. duly received and 
contents noted. In reply I would say that, instead of 
giving you the opinion you ask for, I will give you 
some of the facts that hav^ come under my own observa¬ 
tion during my stay in this section of the country. 

In the building of this flume, the first bar of placer 
ground that we cross that can be made of any practical 
value is the Sheridan Bar, being mile in extent, with 
an average depth of gravel of about 15 feet. Of this 
ground, I can only say that I have seen at least 50 pan 
prospects with a yield per pan of 25 cents. Allowing 
140 pans per yard, and with the above data the value of 
this bar can be easily calculated by yourself. Next 
comes the gulch of the same name, the dirt from which 
has paid on an average of $30 per load or yard. You 
may ask why is not this ground worked ? The reason 
is that all the dirt must be hauled to water, and be 
washed, and the natural obstacle to a roadway are such, 
that it is impossible to haul it with profit, dr the owners 
must build a flume of several miles in length, and no one 
of them is able to do this individually, nor are they able 
to do it collectively. What I have said of this much of 
the country I can say for the next four miles, after which 
I am not prepared to say anything until we reach our 
present end of the flume, which point we reach at such 
an elevation as will enable it to wash a section of the 
country at least 20x12 miles, the whole area of which 
has by actual prospects been demonstrated to be good 


paying ground ; ground tliat will not yield 50 cents per 
yard being tlie very rare exception, and not tlie rule. 
Take such ground as Captain Jack, Jack Ass, Conlson, 
Wyman, Henderson, Headman and Red Earth Gulches 
and that adjoining, and it will be hard to find ground 
that will not yield at least $2.50 to $3 per yard. But this 
ground as it lies to-day, without wetter^ is absolutely 
worthless, and to such ground as I have described, there 
really seems to be no limit. 

As to the probable cost of building this Hume, I am 
not yet in position to make a detailed estimate, but I feel, 
an an engineer, perfectly safe in saying that I do not think 
that it will exceed $6,000 per mile, as there are positively 
no engineering difficulties in the way. 

So great is my faith in this enterprise that I shall, for 
the first time in over 16 years’ practical experience in my 
business, offer to take pay for my own work in locating 
this fiume, in the company’s stock at its market value. 

And now for the only opinion I have to offer in the 
matter. That I thoroughly believe that with manage¬ 
ment of anything like doing business on business prin¬ 
ciples, the stock of the company can, in two years or less, 
be brought to represent its face value. 

Very respectfully, 

(Signed) W^M. H. HENHRICKSON, 

Oiml and Mining Engineer, 




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30 


To Maj. Genl. Alexandee Shalee, 

'New York. 

Dear Sir :—About the 25th of last June, in company 
with Capt. I. M. West, Mr. F. A. Babcock, and several 
other gentlemen, I visited the district generally known 
as the Spring Creek and Bockerville Country,’’ in the 
Black Hills of Dakota. 

We were engaged about one week in our investigation 
of this district. We worked early and late, and made 
many careful tests at each point visited. 

I have read Mr. Babcock’s report of the above investi¬ 
gation, made to Jno. McGinnis, Jr., Esq., 30 Broad 
Street, New York, and dated July 1st, 1879 ; also the 
report of Marcus Walker, Esq., upon the property of 
che “Black Hills Placer Mining Conipany,” dated Not. 
29th, 1879. I can fully corroborate the statements made 
in each of the above-named reports. In truth, the extent 
and richness of the gold placer bars of the country 
referred to are understated by both Mr. Babcock and Mr. 
W alker. , 

The richness of the placer bars, the abundant facilities 
for dumpage, and the never-failing supply of water, 
afforded by Spring Creek, available for hydraulic mining, 
with the proper application of a moderate capital, will 
make this the greatest gold-producing placer district of 
the world. 

Respectfully yours, 

E. E. CUNNINGHAM, 

Ex-Surrey or-General of Nehraslm. 

New Yoek City, Dec. 6th, 1879. 




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